We Think The Compensation For Wacker Neuson SE's (ETR:WAC) CEO Looks About Right

Key Insights

• Wacker Neuson to hold its Annual General Meeting on 23rd of May
• CEO Karl Tragl's total compensation includes salary of €802.5k
• The total compensation is similar to the average for the industry
• Over the past three years, Wacker Neuson's EPS fell by 28% and over the past three years, the total shareholder return was 41%

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Despite strong share price growth of 41% for Wacker Neuson SE (ETR:WAC) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 23rd of May. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for Wacker Neuson

Comparing Wacker Neuson SE's CEO Compensation With The Industry

According to our data, Wacker Neuson SE has a market capitalization of €1.6b, and paid its CEO total annual compensation worth €1.5m over the year to December 2024. Notably, that's an increase of 8.2% over the year before. In particular, the salary of €802.5k, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the German Machinery industry with market capitalizations between €897m and €2.9b, we discovered that the median CEO total compensation of that group was €1.4m. So it looks like Wacker Neuson compensates Karl Tragl in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	€803k	€750k	55%
Other	€652k	€595k	45%
Total Compensation	€1.5m	€1.3m	100%

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. Wacker Neuson pays out 55% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Wacker Neuson SE's Growth

Over the last three years, Wacker Neuson SE has shrunk its earnings per share by 28% per year. Its revenue is down 17% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Wacker Neuson SE Been A Good Investment?

Boasting a total shareholder return of 41% over three years, Wacker Neuson SE has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Wacker Neuson that investors should look into moving forward.

Switching gears from Wacker Neuson, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.